NRIs Face Deposit Protection Risks in India's High-Yield Dollar Fixed Deposits

Indian banks are offering high returns on selected US dollar fixed deposits for non-resident Indians (NRIs), creating an unusual choice for UAE-based NRIs with dollar savings.

The headline rate of up to 7.5% is well above what many conventional bank accounts pay, but it may apply only to a particular tenure, deposit amount or customer category.

Somewhat ironically, the highest returns often come from smaller lenders, making deposit protection an important consideration.